It appears the ponies will be running at Aqueduct on Tuesday after the New York Racing Association, whose franchise expires Monday at midnight, applied to the State Racing and Wagering Board yesterday for a temporary license to continue racing to Jan. 23.

If the SRWB gives its approval – which seems likely, given that on Thursday it approved NYRA’s 2008 race dates for a period of 30 days, contingent upon NYRA entering into an agreement with the state’s Oversight Board to operate the tracks – then there will be no interruption of racing.

Despite being under review for years, the future of racing in New York has come down to the wire. Senior staff from the governor’s office, state Senate and Assembly, all of whom must approve the terms of the next franchise, negotiated for several hours Thursday and yesterday without striking a deal.

Gov. Spitzer and the Democratic assembly favor renewing the franchise NYRA has held since 1955. But the Republican Senate, led by Majority Leader Joe Bruno, is holding out for several conditions, including a reconstitution of the NYRA board.

No final agreement can be reached until the legislature reconvenes on Jan. 9. If NYRA does get a renewal, it hopes to get its Chapter 11 reorganization plan approved in federal bankruptcy court by Jan. 15.

NYRA officials, citing the delicate nature of the negotiations, declined to comment on yesterday’s developments. But Brian Rosen, the attorney handling NYRA’s bankruptcy, said: “Racing at this point, pursuant to the state’s agreement with the Oversight Board and NYRA, is subject to the license being granted by the Racing and Wagering Board. If the board does the right thing, there will be racing on Jan. 1.”